The world of hedge funds is shaped by the unique philosophies and bold decisions of its leading managers. Among the most recognizable names in this realm are David Tepper, founder of Appaloosa Management, and Bill Ackman, founder and CEO of Pershing Square Capital Management. Both have amassed fortunes and reputations by navigating markets with conviction, yet their portfolios reveal strikingly different approaches to investing.

As of June 30, 2025, Tepper manages roughly $6.45 billion in equities, while Ackman oversees a significantly larger equity portfolio of about $13.7 billion. A closer look into their holdings highlights not just size, but also a divergence in style, concentration, and risk appetite. This comparison provides a valuable lens through which to understand two distinct schools of thought in modern hedge fund management.

David Tepper’s Equity Portfolio – A Diversified Strategy

David Tepper’s approach has long been characterized by diversification and opportunism. His current equity portfolio underscores this philosophy, with notable exposure across multiple sectors and geographic regions.

The standout position in his portfolio is Alibaba, which accounts for 12.4% of his equity holdings, valued at approximately $801 million. This indicates Tepper’s willingness to take calculated risks in China despite concerns over regulation and geopolitical uncertainty. He is clearly betting on a recovery in Chinese consumer demand and the long-term growth potential of one of the world’s largest e-commerce players.

Another significant holding is UnitedHealth Group, making up 11.9% of the portfolio at $764 million. This healthcare giant provides Tepper with exposure to a defensive sector, balancing his higher-risk technology and international bets.

Amazon sits at 9.2% of his holdings ($592 million), reflecting confidence in the continued dominance of the U.S. e-commerce and cloud computing leader.

Beyond these concentrated bets, Tepper’s portfolio shows a strong reliance on diversification. Roughly 35% of his assets fall under the category of “Other,” suggesting a wide spread of smaller positions across different industries. Additional notable stakes include Meta Platforms (4.6%, $295 million), Nvidia (4.3%, $276 million), Alphabet (4.1%, $266 million), and Microsoft (3.9%, $248 million).

Interestingly, Tepper also holds positions in the energy sector, with Vistra Corp ($348 million, 5.4%) and NRG Energy ($318 million, 4.9%), reinforcing his contrarian tendency to invest in cyclical industries that others may avoid.

In sum, Tepper’s equity portfolio represents a blend of bold plays on global growth companies, steady U.S. healthcare leaders, and selective contrarian bets. The combination of Alibaba, UnitedHealth, and Amazon illustrates his preference for anchoring the portfolio in giants with strong fundamentals while leaving room for upside from cyclical and international recovery stories.

Bill Ackman’s Equity Portfolio – Concentrated Conviction

In stark contrast to Tepper’s diversified spread, Bill Ackman’s portfolio is concentrated and highly focused. Pershing Square Capital is famous for its “few big bets” strategy, and the latest data reinforces this philosophy.

The largest single position is Uber, which makes up a staggering 20.6% of the portfolio, valued at $2.83 billion. This heavy weighting highlights Ackman’s confidence in the long-term transformation of mobility, ride-hailing, and delivery services. Ackman has repeatedly expressed bullishness on Uber’s ability to become a dominant global platform with strong unit economics.

The second-largest holding is Brookfield Asset Management, representing 18.5% of the portfolio ($2.55 billion). This position provides exposure to real assets, infrastructure, and private markets, aligning with Ackman’s focus on long-term structural themes.

Alphabet (Google’s parent company) is another key holding, accounting for 15.1% of the portfolio ($2.07 billion). This reflects Ackman’s recognition of Alphabet’s unmatched dominance in digital advertising and its growing strength in cloud and AI technologies.

Restaurant Brands International (RBI), the parent of Burger King, Tim Hortons, and Popeyes, represents 11.1% of the portfolio ($1.52 billion). This is consistent with Ackman’s long-standing preference for consumer-facing businesses with strong brands and recurring revenue models.

Other major positions include Amazon (9.3%, $1.28 billion), Howard Hughes Corporation (9.3%, $1.27 billion), and Chipotle Mexican Grill (8.8%, $1.21 billion). These stakes showcase Ackman’s affinity for consumer and real estate-driven investments.

At the smaller end, Ackman holds positions in Hilton Worldwide (5.9%, $0.81 billion), Hertz Global Holdings ($0.1 billion), and Seaport Entertainment Group ($0.09 billion). Despite their smaller sizes, these investments fit into Ackman’s theme of betting on leisure, travel, and hospitality.

Overall, Ackman’s portfolio displays his trademark concentration and conviction. Unlike Tepper, who spreads risk across industries and geographies, Ackman prefers a handful of large, thematic bets that he can influence through activism and long-term stewardship.

Comparing Philosophies – Diversification vs. Concentration

The differences between Tepper and Ackman’s portfolios are not accidental; they stem from fundamentally different investment philosophies.

David Tepper is a classic opportunist. He is willing to chase dislocations in global markets, hedge with defensive assets, and diversify broadly to protect against downside risk. His portfolio is well-suited for adapting to macroeconomic cycles and unexpected shocks.

Bill Ackman, by contrast, runs a concentrated, activist-driven strategy. He prefers to invest deeply in a small number of companies, often influencing management and strategy to unlock value. His conviction allows him to tolerate short-term volatility in pursuit of long-term gains.

This divergence illustrates the broader debate in asset management: whether diversification provides superior risk-adjusted returns, or whether concentration allows investors to fully capture upside from their strongest convictions.

Risk and Reward – Evaluating Exposure

Tepper’s diversification means his portfolio is less exposed to the failure of any single company. His largest stake in Alibaba (12.4%) is meaningful but not overwhelming. Should Alibaba face regulatory challenges or prolonged stagnation, Tepper’s broader diversification across U.S. tech, healthcare, and energy would provide a cushion.

Ackman, however, carries significant idiosyncratic risk. Uber alone makes up more than 20% of his portfolio, and the top five holdings account for over 75%. If one of these companies underperforms, Pershing Square’s returns could be disproportionately affected.

Yet, concentration can also magnify returns. If Uber, Brookfield, or Alphabet significantly outperform the market, Ackman stands to benefit far more than a diversified investor like Tepper. The risk-reward balance is sharper, but so is the potential for outsized performance.

Broader Market Implications

The holdings of Tepper and Ackman are not just reflections of personal strategy—they also serve as signals for broader market sentiment.

Tepper’s heavy investment in Alibaba may be read as a vote of confidence in the Chinese economy, suggesting that some U.S. hedge funds see value in beaten-down Chinese equities despite political risks.

Ackman’s massive bet on Uber underscores the institutional belief in the long-term potential of ride-hailing and logistics platforms to reshape global commerce.

Shared holdings in Amazon and Alphabet reveal consensus around the durability of U.S. technology leaders as cornerstones of modern portfolios.

Their portfolios, in essence, provide a window into how some of the sharpest investors in the world are positioning themselves amid uncertainty in global markets, inflation pressures, and technological disruption.

Conclusion

The comparison between David Tepper and Bill Ackman’s portfolios encapsulates two very different approaches to investing. Tepper’s diversification strategy provides balance, global reach, and adaptability, while Ackman’s concentrated conviction strategy amplifies both risk and potential reward.

Both investors have built legacies by staying true to their respective philosophies, and their portfolios as of mid-2025 reflect the strengths and vulnerabilities of these approaches. For observers and investors alike, the key takeaway is not which style is superior, but rather that different strategies can succeed if executed with discipline and insight.

In a financial world defined by uncertainty, Tepper and Ackman demonstrate that conviction—whether expressed through breadth or focus—remains the ultimate driver of investment success.